Income and wealth distribution by state

Monday, September 12, 2016

High wealth, high income

What are the high wealth, high income states? Western Australia is leading in terms of both income and wealth, with $133,224 and $952,500 respectively, which is well above the average household annual gross income of $107,276 and average household net worth of $809,900.

However, over the last year particularly, the impact of the mining slowdown has affected earnings and also wealth. The reliance on the mining sector and the fluctuation of income and wealth based on the fortunes of this one sector are highlighted in the fact that between 2012 and 2014, the household incomes of those in Western Australia rose by 21% which was almost double that seen in the leading east coast state of New South Wales, and the wealth in this 2 year period increased by 24%, again almost double on what we saw from the best performing east coast states.

Top performing states

New South Wales is the most consistent performer in wealth and income, and the only other state to have both income and wealth about the national average (12% on income and 13% on wealth). It has a stable economy, with the largest infrastructure investments in the nation, a broad base of industries and consequently solid forward forecasts.

The Northern Territory, like Western Australia has been fluctuating, and while it has average income above the national average, its wealth is below the national average. Queensland, while improving in both income and wealth is below the national average on both as well. And Victoria while seeing solid gains in both income and wealth, with wealth largely due to the housing market above the national average, its income has still not quite reached the national average.

Worst performing states

The worst performing states are Tasmania, with incomes 26% below the national income and wealth average, as well as South Australia which is 19% below the average household income and 20% below the national net wealth.

While household income gains have been low in some states (a total of 6% gain since 2012 in South Australia, Tasmania and the Australian Capital Territory over the last 2 years), at least all of the states have had an increase in incomes, but such has been the change in property prices and the rise in living costs, the Northern Territory, South Australia, Tasmania and the Australian Capital Territory have all seen a slight fall in average household wealth since 2012.

The New Australian Dream

Thursday, September 01, 2016


Owning your own four bedroom house on a decent block of land with a big backyard and outdoor swimming pool used to be the quintessential 'Great Australian Dream'. But with rising property prices and increased living costs, that dream is being redefined.

what is the Average Australian Profile?

The average full time annual income in Australia is $80,000, which is bumped up a bit because of high income earners. Even though we are living longer now than a generation ago, the average retirement age is little changed, at 61.5 years.

The cost of housing is up with average rent prices per week at $485/week and the average house price (capital city) is $765,730. In Melbourne it is well above this and in Sydney it is around $1 million. This is where the challenge is for Australians: 40 years ago the average house price was around 5 time’s average earnings and now you can see it is almost 10 times the average annual fulltime earnings.

Other than affordability, what else are Aussies looking for?

Lifestyle is key. People are opting to live in higher density areas for the sake of convenience and location- within close proximity to transport, restaurants – the café culture as it has been called. Our Urban Living Index shows a strong correlation between the most urban/densified suburbs and those with the highest liability ratings.

Australians are opting for a lifestyle of Minimalism - we are 'decluttering' our lives and putting more value on the intangibles like travel. Generation Y aren’t opting for a big home with garages to store all their stuff but more of a focus on the easy-livability of apartment living. Indeed many baby boomers are downsizing from their larger homes in the suburbs to this style of living too.

Renting, as opposed to buying, what some of the benefits?

The ability to change locations easily is well regarded – the average Australian renter stays just 1.8 years per home. Our research shows that 1 in 3 renters are actually 'choice renters' and they choose to rent for lifestyle reasons, not primarily for affordability reasons. These choice renters are twice more likely to be living in medium and high density housing than the average Australian and they are almost 10 years younger than the average Australian. The ability to upsize and downsize easily and the flexibility to travel for extended periods of time is a driver for them. ‘Rentvesting’ is also becoming a ‘thing’. This is where people choose to rent in an area they like, but buy somewhere more affordable and use this as an investment

Generation Y are struggling to attain the Great Australian Dream – are they going to be ok?

There is a challenge emerging of "generational inequity" as shown by this infographic:

Gen Y’s have the least wealth of the working generations and their proportion of Australia’s wealth is less than half their demographic share, while the Baby Boomers who are a quarter of the population, own more than half of Australia’s wealth. (More information on this topic can be found here)

This is why Gen Y is reinventing the Aussie Dream and while they do still like the idea of owning something of their own, it is not just the big home with the back yard in the suburbs. But many in this generation will be absolutely fine thanks to the massive intergenerational wealth transfer set to happen in the next 20 years as those aged over 65 transfer much of their total wealth of $2.5 trillion.

Wealth and Income Distribution State V State

Monday, July 25, 2016


Australia has long been considered the land of the middle class, but in recent years the gap has been widening between the rich and the poor. When it comes to the battle of the states, which corner of Australia scores the highest and the lowest on the income and wealth report? Will the Baby Boomer generation continue their stronghold on our national wealth?

Is Australia still the land of the middle class?

It is hanging in there, but it’s under pressure. We have seen some hollowing out in the middle of the earnings and a bit of spread to either end. The average annual household earnings are around $107,000 however the lowest fifth of households earn 20% of this while the top fifth average almost three times this. That means that the top fifth of households are taking home about 12 times what the bottom fifth of households are earning.

Most Aussies have their wealth tied up in their homes, how does ownership compare with the top, middle and lower classes?

The average wealth (if you liquidate everything and pay off all your debts, what are you left with) is about $800,000. The bottom 1 in 5 have a net worth of just $35,000, the top 20% of all household have a net worth of about $2,500,000. That means that the top fifth of households have about 62% of Australia’s wealth, and the bottom fifth take less than 1% of Australia’s national private wealth. So that's a big difference in wealth across these households.

Which states are best and worst performers when we are looking just at income?

The mining boom in WA has really done a great thing over there and so they are leading the earnings chart, with the ACT not too far behind with public servant wages doing pretty well. At the bottom of the tree you have Tasmania, earning about $50,000 less per annum, per household, than what we have in the west.

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

market research professional presenters visual debt SA cloudy days census data workplace 2012 home owner wealth inequality education future James Ward cultural diversity wealth and income distribution education area baby names online capital cities resilience financial future study outsourcing weather CBD leadership aussie culture names financial independence supply and demand educated travel geomapping demographic trends tattoos generations future-proof research food Melbourne Channel Seven demographics hello fresh responsive future of work mythbusting social future of education marrickville ease of travel house ultimo interactive ashley fell social impact report baby names australia report states pyrmont teach apartment ethnography world land of the middle class generation alpha Mark McCrindle cancel plans change conference divorce System's Architect local ACF17 average aussie shifts population milestone social issues financial community children ABS investor etiquette GPO census results Engineering Manager TAS property price emerging generations Tuesday Trends teachers Kirsten Brewer NEETs gig economy university degree millionth Northern Beaches chairty screenage water social commentary healthy future "know the times" social change NSW professional millenials norwest Kiwi Adelaide friends typical australian economy aged care EFF Gen Y learn bureau workshop Research Director average sydneysider learning father's day retirement Territory cancelling event volunteers student debate daily commute product balance income teaching research pack engagement aged care puzzle the average aussie rich life sun emerging trends Australian Dream youth research services happiness national private wealth learner population social enquiry tuesday Population Clock collaborative researcher Generation X Australian Communities Trends ashley mckenzie February 16 alpha spirituality forum demographic transformations holidays speaker motivate workplace culture public speaker office space innovation micro ACF investment Geoff Brailey social media demographic sector wide Sydney celebration snapshot new york times budget growing population youth unemployment experience grandparents Australian Families tea anzac research visualisation rise of local cash mateship business data Australian communities learning styles non profit high school Queensland McCrindle Speakers students data analyst government poor FPA online shopping thought leadership builders The Daily Edition suburb future of shopping sydney metro Australian community trends office opening eliane miles infographic wall follow Research Executive baby boomers urban HSC gold coast australians staying home more The ABC of XYZ English PSI economic trends analyst young people suburban living NBRS Northern Beaches Christian School global the great screenage eliane culture internships women socialising christianity FOMO communications omnibus keynote year 12 business index cartodb financial dreams ACT selfie participants faux-cilising future dreaming video define futurist Real Estate Institute of Victoria presentations schools customer 40 million brand experience financial fears New Zeland click Gen X cica shbc residents high density Do It Yourself sydneycity professional speaker environment townhouses australian communities trends report media commentary travelling Love choice workers seasons house prices brisbane insights Skilling suburbs careers resource trend tuesday households workforce contiki qualitative research global generations breakfast leadership workshop Australian demographics stats 24,000,000 insight Caregiver holiday Tasmania volunteer list digital narcissism future proof personalities village high density living future proofing Northern Territory cold 1980 social lives language Christmas season proactive public holiday cost of living woolworths new office SMART showreel school satisfaction technology JOMO DIY litter trades work mates TDE young australians mentor vegemite living social researcher World Water Day communicate social commentator curiosity not for profit crime 24 million not-for-profit high density apartments Christchurch media release facts panel twentyseventeen buildings faith teacher Myth Queensland: QLD world youth day 23 million environmental scanning award winner renter of the future Australian Population royal family rule keeper sydneysiders VIC sector jobs salary organisations generation Z Deaths sydney hills charity plans royal baby religion casual Andrew Duffin 2020 gig sydneysider Hills Shire Council 2015 faux-ciliser marriage 2016 train national wealth training Duchess of Cambridge criminal pharmacies career Word Up commute public speaking blaxland Generation Y megatrends nfp analysis REIV National Conference TEDx meetings Assistant Store Manager wealth 1968 consumerism socialites Charlotte Crime Rates consumer menai darwin baby name dream ipswich couple mccrindle tea Valentine’s Day coffee changing face of sydney WA australian real estate Australia Day 2017 challenge middle class sector wide study unaffordable affordable princess charlotte Real Estate REIV Conference 2016 census results care support grave decision dare to dream millennials tips organisational culture priorities 2016 census poker master ACF2017 bondi global financial crisis acf15 baby name trends repayments know the times national crime rates internet ideas urban living professional services professional development tv Scouts google for education the changing face of earning entrepreneurs of today brand trends of 2016 hobart wage hopes shopper's pick education research monarchy financial planning divorce rate Sydney Hills Business Chamber survey design university toys domestic speakers pack data visualisation rain innovative communication hills Education Future Forum affordability cancelling plans speakers daily telegraph 1994 mccrindle in the media thrive local communities Aussies focus group South Australia mobile hills shire increasing densification award Wagga Wagga social life property market keynote speaker 2014 communities prince george house price urban taskforce Macquarie University earn demographer Merry Christmas Australian Home society trends bus 1975 employment live the dream recap winter blues Work place January 26th greatness demography small business Bathburst long weekend social shifts christmas housing growth Christmas presents staff fears community engagement Christmas lunch rental stress finance goal entertainment story australian communities forum housing mining boom work-life safe charities Tuesday Trend TED child care in depth interviews goals kate middleton group session presentation generation the hills shire wolloomooloo wealth and income brands family Canberra Australia street commuters conferences volunteering data victoria events census fail TED talk emerging technologies results DESTEL intern cost identity networking wealth distribution belief men earnings ageing population mover and shaker baby boom education future report Res Vis local community Netflix schools students trends of 2017 cooking meals weekly earnings growth money Australian Trends optimistic Australian Census Financial Planning Association collaboration gen alpha slideshare offenders micro apartments Australian schools focus groups overcast in the media 2013 neutral bay case study easy rider sydney speaker parents skills population map home teleworking NBRS Architecture 2017 friendship families vegetarian low density fresh NFP event trends urban living index staying in huffington post google relevant annual income sunny days school australian social research relational waverton media pharmacy lalor park Hornsby Shire Council apartments transport quote clothing statistics wedding easter australia house price rise conference speaker moderators guide survey mother's day cultural diveristy Social Trend rising house prices logan storytelling Channel 7 impact engage spend community event politics ageing capital city forecasting SRE tableau Financial Planning Association of Australia wages renting sports society personal growth sydney event newspaper baby crows nest education sector trend the australian dream infographic infographics group Vocational education social researchers gen z optus my business awards baby name predictions NT equip mccrindle ferry housing trends perth home ownership marketing parenting royal influence year 7 investing church social analysis census media activity 10 years culturally diverse australian community trends report #censusfail business performance royal Western Australia optus housing market potts point household employers property school students internship VET Northern beaches Event Australian Bureau of Statistics medicine post rationalism social trends Births event sunburnt country cars tertiary education australian forecast unemployment authenticity real Financial Planning Week christian housing affordability baby names report office social research IT Specialists entrepreneur New Zealand publication Sydney keynote speaker Wellington news paying to work program wellbeing census 2016 owning a home purpose sentiments VET sector shopping centre winter research report gender dessert generational trends Royals summer visualisation shopping Australia Day CPI city sustainable population growth SMSF Australians hornsby stay home Wodonga graphs average Australian lifestyle mythbusters going out marriages educhat leader energy state moreton bay work manly the hills dreams Aussie jobs of the future entrepreneurial deloitte mortgage research data rent volunteering New South Wales car mccrindle research faux-cilise ACF 2016 conference presentation

Archive